Get Social

Texas lawmakers to discuss rising retired teacher health costs

Austin American-Statesman (TX)

Sept. 05--Texas House lawmakers are expected to discuss Wednesday funding problems within the state health insurance program for retired teachers.

Among the issues that the House Appropriations Subcommittee could discuss include a proposal by the Teacher Retirement System board to increase premiums by $600 a year for retired teachers under the age of 65. The board is expected to vote on the proposal later this month.

If premiums aren't raised, the system faces a funding shortfall of $410 million through the 2020-21 biennium. If the premium hike goes through, the funding need drops to $246 million, according to the system.

READ: Texas retired teachers leaving state health program in droves

To stave off a $1 billion shortfall, the Legislature in 2017 injected $484 million into the system over the next two years, but it cut some benefits for retired teachers by paring down the number of health care plans.

After retirees inundated lawmakers' phone lines with concerns about the changes during the summer of 2017, the Legislature during the special legislative session infused $212 million more into the system to lower premiums and deductibles, but it wasn't enough to keep retirees from leaving the retired teacher health insurance program.

About 36,000 retired teachers and their dependents dropped out of the state health insurance program in 2018, according to the system. The system has 233,000 members.